The Power of a Financially Literate Woman in Intra-Household Financial Decision-Making

47 Pages Posted: 14 Dec 2020 Last revised: 19 Apr 2021

See all articles by Anurag Narayan Banerjee

Anurag Narayan Banerjee

Durham Business School

Iftekhar Hasan

Fordham University ; Bank of Finland; University of Sydney

Kamlesh Kumar

Durham University, Business School, Department of Economics and Finance, Students

Dennis Philip

Durham University - Department of Economics and Finance

Date Written: April 13, 2021

Abstract

Using India's national benchmark survey for financial literacy and inclusion, we observe a step change in financially literate women, who possess higher levels of sole and joint responsibility with their spouse to manage their households' finances. Considering ownership information in eighteen different financial products, alternative investments (such as gold, property) and informal banking (such as savings at home, loans from moneylenders), we find that household product holdings are greatest where the husband and wife are jointly responsible for financial decision-making, and in particular where the wife is financially literate. Such households benefit from men's preference for higher risk-return products, whilst also holding security-focused products, such as savings and insurance products, favored by women. The findings emphasize the importance of financial literacy and spousal teamwork in intra-household financial decision-making.

Keywords: financial literacy, gender gap, intra-household decision-making, financial responsibility, caste, financial holdings

JEL Classification: J16, J15, D14, O16

Suggested Citation

Banerjee, Anurag Narayan and Hasan, Iftekhar and Kumar, Kamlesh and Philip, Dennis, The Power of a Financially Literate Woman in Intra-Household Financial Decision-Making (April 13, 2021). Available at SSRN: https://ssrn.com/abstract=3246314 or http://dx.doi.org/10.2139/ssrn.3246314

Anurag Narayan Banerjee

Durham Business School ( email )

Mill Hill Lane
Durham, Durham DH1 3LB
United Kingdom

Iftekhar Hasan

Fordham University ( email )

45 COLUMBUS AVENUE
GBA-5TH FLOOR
NEW YORK, NY 10023
United States

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

University of Sydney ( email )

P.O. Box H58
Sydney, NSW 2006
Australia

Kamlesh Kumar

Durham University, Business School, Department of Economics and Finance, Students ( email )

Durham
United Kingdom

Dennis Philip (Contact Author)

Durham University - Department of Economics and Finance ( email )

Department of Economics and Finance
Mill Hill Lane
Durham, DH1 3LB
United Kingdom

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